Lagos, Nigeria – Fidelity Bank Plc has announced that its recent public offer for 10 billion ordinary shares at N9.75 per share was significantly oversubscribed, reaching a subscription level of 237.92%.
In a statement, the bank disclosed that it received 108,046 applications for 23,791,687,463 ordinary shares, amounting to N231.968 billion. After verification, 107,588 applications for 23,768,724,000 shares, totaling N231.745 billion, were deemed valid under the terms of the offer and the Central Bank of Nigeria’s (CBN) Capital Verification Exercise (CVE).
The bank confirmed that no applications were disqualified following the CBN’s CVE. However, 458 applications for 22,765,143 shares, worth N221.96 million, were invalid and rejected. Additionally, 548 applications with odd lots totaling 198,320 shares (N1.933 million) were also declined.
Share Allocation and SEC Approval
Following a resolution by its shareholders on July 26, 2024, Fidelity Bank was authorized to increase its share capital by up to 8.2 billion additional shares. As a result, the bank absorbed 50% more than the initial offer size and allotted an additional 5 billion shares.
All 107,588 valid applications were allotted shares, and the basis of allocation has been approved by the Securities and Exchange Commission (SEC).
According to the bank, the allotted shares will be credited to investors’ CSCS accounts by February 13, 2025, five business days after the SEC clearance. Investors without CSCS accounts will have their shares credited using a Registrar Identification Number. Refunds for unallocated funds will also be processed by the same date.
Rights Issue Records 137.73% Subscription
Fidelity Bank also reported that its Rights Issue of 3.2 billion ordinary shares at N9.25 per share recorded a 137.73% subscription rate. The Rights Issue was offered on a 1-for-10 basis to shareholders as of January 5, 2024.
A total of 7,559 applications for 4,430,290,237 shares, valued at N40.98 billion, were received. Out of these, 6,903 applications for 4,407,252,795 shares, worth N40.767 billion, were deemed valid.
Meanwhile, 52 applications for 295,990,800 shares, totaling N2.737 billion, were submitted for rights traded on the Nigerian Exchange Limited (NGX).
Further analysis showed that 183 shareholders with provisional allotments of 162,860,544 shares partially accepted 65,378,325 shares, leaving 97,482,219 shares worth N901.71 million renounced.
Additionally, 6,668 shareholders fully accepted 1,474,892,761 shares, amounting to N13.642 billion. Among them, 2,959 applicants requested 2,570,990,909 additional shares, but only 1,363,738,114 shares (N12.614 billion) were allotted, representing an allotment level of 53.04%.
No applications were rejected following the CBN’s Capital Verification Exercise. However, 656 applications for 23,037,442 shares (N213.096 million) were deemed invalid. A total of 1,266,255,895 shares, worth N11.712 billion, were fully renounced.
100% Allotment Confirmed
With SEC approval, Fidelity Bank confirmed a 100% allotment for the Rights Issue, ensuring that all eligible investors received their due shares.
The bank reiterated its commitment to utilizing the proceeds to enhance growth, strengthen its capital base, and improve shareholder value.